Individual taxpayers having taxable annual income up to Rs 5 lakh will get full tax rebate, therefore, will not be required to pay any income tax. People with gross taxable income up to Rs 6.5 lakh will have to pay no tax if they utilise the maximum benefit of Rs 1.5 lakh available under section 80C.

Impact: If your taxable income does not exceed Rs 5 lakh a year (after claiming all the deductions under sections 80C to 80U and other tax exempt allowances) you can end up paying zero taxes.

For salaried individuals and pensioners, the standard deduction has been proposed to be hiked to Rs 50,000 from the current Rs 40,000.

Impact: For salaried individuals and pensioners, additional hike of Rs 10,000 in standard deduction can help in reducing their taxable income up to Rs 5 lakh.

No tax on notional rent

Home-owners will not be required to pay tax on notional rent if they have more than one self-occupied property. According to the budget proposals, exemption has been proposed on the income tax from the notional rent on second -self-occupied house.

Impact: If you own a second house which is not let-out, then you will not have to pay tax on the income which is actually not earned by you.

To benefit small depositors and non-working spouses, TDS threshold limit has been proposed to be hiked to Rs 40,000 from the current of Rs 10,000.

Impact: From April 1, 2019, TDS will be deducted from your bank FDs only if the interest income exceeds Rs 40,000 in a financial year.

Additionally, TDS threshold limit has been proposed to be hiked to Rs 2.4 lakh in a financial year from the current Rs 1.8 lakh for small taxpayers who have given property on rent to non-individuals.

Impact: This move will benefit those landlords who have given their property to non-individuals, i.e., corporates etc. Essentially, this will give tax-related convenience relief to those who depend on rental income.

Sell 1, buy two houses

To save tax on long-term capital gains on the sale of house property, you will be able to invest gains in two house properties instead of one, once the budget is passed by the Parliament. But this benefit is available once in a lifetime only if capital gains do not exceed Rs 2 crore.

Impact: Individuals who could not fully utilise the capital gains from the sale of house by either purchasing or constructing a house can now use them to buy two houses. However, the catch is your capital gains should not exceed Rs 2 crore and this benefit can be availed once in a lifetime only.